Steinhoff Announces “Successful Consummation” Of Cash Offer For Mattress Firm Stock

Image courtesy of RetailByRyan95

South African retailer Steinhoff and Mattress Firm are likely shopping for some new pajamas after announcing the “successful consummation” of a previously announced $64 per share cash tender offer for the U.S. company’s outstanding common stock.

Steinhoff International Holdings says its completed its tender offer for all of the outstanding shares of common stock of Mattress Firm, the owner of the Sleepy’s brand. That includes a total of 25,104,824 Mattress Firm shares, representing approximately 67.36% of the outstanding common stock of Mattress Firm. Notices of guaranteed delivery were given in regards to another 3.62% of outstanding common stock.

All told, the deal is worth $3.8 billion, including debt. And yes, the companies did use the word “consummation” to describe the latest news.

Next up, Steinhoff will complete the merger by making payment on those shares, per the terms of its offer. At that point, Mattress Firm will become a subsidiary of Steinhoff, and its common stock will no longer be traded on NASDAQ.

Mattress Firm has about 3,000 stores across the contiguous U.S., and 80 distribution centers. Sleepy’s was the second-largest specialty mattress retailer in the U.S. with more than 1,050 stores in 17 states when Mattress Firm acquired its holding company, HMK Mattress, in December 2015 in a deal worth about $780 million.

With this union, Steinhoff will be able to branch out across the pond. It currently owns brands in Africa, Australia, the U.K., and across Europe.

“We remain excited about the future opportunities for our business as we build a national chain in the U.S,” Steve Stagner, Mattress Firm’s executive chairman and board chairman, said in a statement at the time. “We are also moving towards the completion of our transaction with Steinhoff, and believe Steinhoff is the ideal long-term partner for our customers, employees, suppliers and other stakeholders.”

Want more consumer news? Visit our parent organization, Consumer Reports, for the latest on scams, recalls, and other consumer issues.